Stagwell (STGW) Corporate Family Rating Upgraded by Moody's; Outlook is Stable Amid 'Good Operating Momentum'

Rhea-AI Summary

Stagwell announced that Moody's Investors Service upgraded its corporate family rating from B2 to B1, reflecting positive operating momentum post-merger and a focus on deleveraging. The profitability of default rating improved to B1-PD from B2-PD, and the senior unsecured notes rating upgraded to B2 from B3. The speculative grade liquidity rating was also enhanced to SGL-2 from SGL-3. The outlook changed to stable from positive. Stagwell will report its financial results for Q2 on August 4, 2022, before market open.

Positive

• Corporate family rating upgraded to B1 from B2 by Moody's.
• Profitability of default rating improved to B1-PD from B2-PD.
• Senior unsecured notes rating upgraded to B2 from B3.
• Speculative grade liquidity rating enhanced to SGL-2 from SGL-3.
• Stable outlook indicates reduced risk for investors.

Negative

• Outlook changed from positive to stable, indicating a potential slowing of growth.

NEW YORK, July 14, 2022 /PRNewswire/ -- Stagwell, the challenger network built to transform marketing, today shared that Moody's Investors Service (Moody's) has upgraded the company's corporate family rating to B1 from B2. Additionally, Moody's upgraded the profitability of default rating to B1-PD from B2-PD, senior unsecured notes rating to B2 from B3, and speculative grade liquidity rating to SGL-2 from SGL-3. Given the upgrade, the outlook was also changed to stable from positive.

In a release from Moody's, Peter Adu, Moody's Vice President and Senior Credit Officer commented on this upgrade saying that, "The upgrade reflects the company's good operating momentum post-merger and its focus on deleveraging."

The full release from Moody's can be found here.

 "This week's upgrade is a positive development for Stagwell, reflecting the financial and operational transformation our corporate leaders have steered as we near the one-year anniversary of Stagwell's formation," said Mark Penn, Chairman and CEO, Stagwell.

Stagwell will report financial results for the three months ended June 30, 2022, on Thursday, August 4, before market open. Register for the earnings webcast at 8:30 AM E.T. the same day.

About Stagwell 

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 12,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Contact:

Press:

Beth Sidhu
pr@stagwellglobal.com
(202) 423-4414

Investors:

Michaela Pewarski
ir@stagwellglobal.com
(646) 429-1812

View original content to download multimedia:https://www.prnewswire.com/news-releases/stagwell-stgw-corporate-family-rating-upgraded-by-moodys-outlook-is-stable-amid-good-operating-momentum-301586928.html

SOURCE Stagwell Inc.

FAQ

What did Moody's upgrade for Stagwell (STGW)?

Moody's upgraded Stagwell's corporate family rating from B2 to B1, reflecting improved financial health.

When will Stagwell (STGW) report its financial results?

Stagwell will report its Q2 financial results on August 4, 2022, before market open.

What is the significance of the B1 rating for Stagwell (STGW)?

The B1 rating indicates a moderate credit risk, which can positively affect investor confidence and stock performance.

What does stable outlook mean for Stagwell (STGW)?

A stable outlook suggests that Moody's expects Stagwell's financial performance to remain steady without significant changes.

What operational improvements led to Moody's rating upgrade for Stagwell (STGW)?

The upgrade reflects good operating momentum post-merger and the company's focus on deleveraging.